Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $40 per unit $60 per unit $ 20 per unit $ 8,800,000 per year $ 11 per unit $ 5,000,000 per year 110,000 units 80,000 units $ 360 per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales $ 28,800,000 Less: Variable expenses Variable cost of goods sold $ 9,600,000 Variable selling and administrative expenses 880,000 10,480,000 Contribution margin Less: Fixed expenses Fixed overhead Fived selling and administrative evnences
Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $40 per unit $60 per unit $ 20 per unit $ 8,800,000 per year $ 11 per unit $ 5,000,000 per year 110,000 units 80,000 units $ 360 per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales $ 28,800,000 Less: Variable expenses Variable cost of goods sold $ 9,600,000 Variable selling and administrative expenses 880,000 10,480,000 Contribution margin Less: Fixed expenses Fixed overhead Fived selling and administrative evnences
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sims Company began operations on January 1. Its cost and sales information for this year follow.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Units produced
Units sold
Sales price
1. Prepare an income statement for the year using variable costing.
2. Prepare an income statement for the year using absorption costing.
$40 per unit
$60 per unit
$ 20 per unit
$ 8,800,000 per year
$ 11 per unit
$ 5,000,000 per year
110,000 units
80,000 units
$ 360 per unit
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare an income statement for the year using variable costing.
SIMS COMPANY
Income Statement (Variable Costing)
Sales
$ 28,800,000
Less: Variable expenses
Variable cost of goods sold
$ 9,600,000
Variable selling and administrative expenses
880,000
10,480,000
Contribution margin
Less: Fixed expenses
Fixed overhead
Fived selling and administrative evnences
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